A LITTLE-KNOWN lender of the last resort, that goes by the name TCC is getting around 10 calls every day - compared to about one or two a year ago - from people looking to quickly pay off credit card debts.

The cooperative lends people money at interest rates that are generally lower than bank rates.

Its general manager Shoba Gunasekaran told The Straits Times that there was definitely a 'surge in interest' from people who were keen to borrow money from the cooperative to pay off their credit card bills.

'We have processed 34 such cases in the past three months, compared to only 14 during the same period last year.'

But not all applicants may be found suitable, she said, particularly since they require guarantors.

Operations manager Tony Lee , 35, approached TCC recently for help to pay off debts worth $70,000, including the $60,000 he had spent renovating his five-room flat. He had borrowed the amount on seven credit cards.

Shortly afterwards, in November last year, Mr Lee had his monthly pay cut from $5,000 to $3,000 as business slowed down for the security company he worked for.

'When I approached TCC, I had exhausted all savings and was failing to even meet the minimum payments,' he said.

In order to qualify for a loan, the father of two furnished a guarantor and terminated all his credit facilities. TCC immediately paid off the banks.

He will need to pay back the cooperative in six years at rates that are 3 to 4 per cent lower than what he would have had to pay the banks.

'I've learnt to deal with the unexpected,' he said. 'When you are spending big money you must never assume that the economy will always be good.'

This article was first published in The Straits Times on November 17, 2008.